Amendment of specifications for South Korea black mass payable indicators

Following a one-month consultation, Fastmarkets has amended the specifications of its payable indicators to tighten the metal contents for nickel, cobalt, lithium and copper.

In pricing the market since May 2023, Fastmarkets has observed that the overwhelming majority of nickel cobalt manganese (NCM) and nickel cobalt aluminium (NCA) battery black mass that is offered, bid or traded in the CIF South Korean market has lithium content of 3-5%.

Furthermore, payables for NCM/NCA black mass material of more than 6-7% lithium content are mostly at much higher levels than material in the standard 3-5% range, and consequently payables for these higher-lithium-content materials appear as outliers in Fastmarkets’ pricing sessions, when they do appear.

Fastmarkets also received feedback saying that the limit of content for copper, which is typically seen as an impurity in black mass, should be reduced.

Fastmarkets has also received feedback saying that, due to the prevalence of mixing in black mass assays, it is not necessary to retain this note.

The previous pricing specifications were:

MB-BMS-0001 – Black mass, NCM/NCA, payable indicator, nickel, cif South Korea, % payable of LME Nickel Cash Official price
Quality: Nickel and cobalt-rich black mass composed with metal content of 15-30% nickel, 5-20% cobalt, 2-7% lithium, max 6% aluminium, max 5% copper. Minimum total cobalt and nickel content of 20%.
Quantity: min one container load
Location: Cost insurance and freight (CIF) main ports, South Korea. Data points for South Korean domestic trade may be normalized based on information provided by market participants.
Timing: 45 daysUnit: % payable of LME Nickel Cash Official price
Payment terms: Letter of credit
Publication: Weekly, Wednesdays 6-7pm Singapore time.
Notes: Material must be dried and free-flowing. Price based on NCM and NCA electric vehicle (EV) black mass.

MB-BMS-0002 – Black mass, NCM/NCA, payable indicator, cobalt, cif South Korea, % payable of Fastmarkets’ standard-grade cobalt price (low-end)
Quality: Nickel and cobalt-rich black mass composed with metal content of 15-30% nickel, 5-20% cobalt, 2-7% lithium, max 6% aluminium, max 5% copper. Minimum total cobalt and nickel content of 20%.
Quantity: min one container load
Location: Cost insurance and freight (CIF) main ports, South Korea. Data points for South Korean domestic trade may be normalized based on information provided by market participants.
Timing: 45 daysUnit: % payable of Fastmarkets’ standard-grade cobalt price (low-end)
Payment terms: Letter of credit
Publication: Weekly, Wednesdays 6-7pm Singapore time.
Notes: Material must be dried and free-flowing. Price based on NCM and NCA electric vehicle (EV) black mass.

The amended specifications are (points of difference shown in italics):

MB-BMS-0001 – Black mass, NCM/NCA, payable indicator, nickel, cif South Korea, % payable of LME Nickel Cash Official price
Quality: Nickel and cobalt-rich black mass composed with metal content of 15-25% nickel, 5-15% cobalt, 3-5% lithium, max 6% aluminium, max 2% copper. Minimum total cobalt and nickel content of 20%.
Quantity: min one container load
Location: Cost insurance and freight (CIF) main ports, South Korea. Data points for South Korean domestic trade may be normalized based on information provided by market participants.
Timing: 45 daysUnit: % payable of LME Nickel Cash Official price
Payment terms: Letter of credit
Publication: Weekly, Wednesdays 6-7pm Singapore time.
Notes: Material must be dried and free-flowing. [No other notes.]

MB-BMS-0002 – Black mass, NCM/NCA, payable indicator, cobalt, cif South Korea, % payable of Fastmarkets’ standard-grade cobalt price (low-end)
Quality: Nickel and cobalt-rich black mass composed with metal content of 15-25% nickel, 5-15% cobalt, 3-5% lithium, max 6% aluminium, max 2% copper. Minimum total cobalt and nickel content of 20%.
Quantity: min one container load
Location: Cost insurance and freight (CIF) main ports, South Korea. Data points for South Korean domestic trade may be normalized based on information provided by market participants.
Timing: 45 daysUnit: % payable of Fastmarkets’ standard-grade cobalt price (low-end)
Payment terms: Letter of credit
Publication: Weekly, Wednesdays 6-7pm Singapore time.
Notes: Material must be dried and free-flowing. [No other notes.]

The amendment to Fastmarkets’ South Korean black mass payable indicators took effect on Wednesday July 12.

To provide feedback on these prices, or if you would like to provide price information by becoming a data submitter to these assessments, please contact Lee Allen by email at: pricing@fastmarkets.com. Please add the subject heading: “FAO: Lee Allen re: Asia black mass payable indicators.”

To see all Fastmarkets pricing methodology and specification documents, go to: https://www.fastmarkets.com/about-us/methodology.